Chancellor Philip Hammond described his first and last Spring Budget as one that “takes forward our plan to prepare Britain for a brighter future”.
The following report summarises the announcements made by Chancellor Philip Hammond during the Budget 2017 on 8 March 2017. For a copy of our full Spring Budget 2017 report please see our Client Area or contact vicki.h@bwm.co.uk
Overview
The economic forecasts outlined by the Office for Budget Responsibility (OBR) were broadly in line with those from the Autumn Statement in November 2016.
Inflation is forecast at 2.4% in 2017, 2.3% next year and 2% in 2019.
Growth is predicted to be 2% in 2017 (up from 1.4% forecast at Autumn Statement 2016) and 1.6% in 2018.
Borrowing in 2016/17 is forecast to be £51.7 billion (£16.4 billion lower than in the autumn) and public sector net borrowing is predicted to fall from 3.8% of GDP in 2016 to 2.6% this year.
Spring Budget 2017 was light on new measures with very few new announcements that will come into effect for the 2017/18 tax year.
The Chancellor confirmed that from April 2017:
- the national living wage will be £7.50 an hour
- personal allowance will increase to £11,500 and the higher rate threshold to £45,000 (£43,000 in Scotland)
- a new NS&I bond paying 2.2% on deposits up to £3,000.
The following report summarises the announcements made by Chancellor Philip Hammond during Spring Budget 2017 on 8 March 2017.
Key changes at a glance
Making tax digital
Quarterly reporting delayed by one year for businesses with turnover below VAT threshold
T-levels
New qualification for technical education
R&D tax credits
Measures to lower administrative burden to be introduced
Business rates
Cap in bills for firms coming off small business rate relief in England
Self-employed NICs
Class 4 NICs to rise to 10% in April 2018 and 11% in April 2019
Dividend allowance
Tax-free dividend allowance to reduce to £2,000 from April 2018
Business Rates:Pubs
£1,000 business rate discount in England
Tax avoidance
Measures against converting capital losses to trading losses
Soft drinks levy
18p rate for main band and 24p for higher band
